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Flex Inc. (FLEX)

  • Mon, Oct. 19, 5:39 PM
    | Mon, Oct. 19, 5:39 PM | Comment!
  • Mon, Oct. 19, 5:31 PM
    • Range-bound FLEX has rallied to $11.85 (a level last seen in June) after hours after beating FQ2 estimates and guiding for FQ3 revenue of $6.2B-$6.8B and EPS of $0.28-$0.34, in-line with a consensus of $6.61B and $0.29.
    • The contract manufacturer saw its adjusted op. margin rise 30 bps Y/Y in FQ2 to 3.1%. Gross margin (non-GAAP) rose 20 bps to 6.3%, and SG&A spend 4% to $202.6M.
    • $142M was spent to buy back nearly 13M shares (over 2% of outstanding shares). Flex ended FQ2 with nearly $1.7B in cash, and over $2.6B in debt.
    • FQ2 results, PR
    | Mon, Oct. 19, 5:31 PM | Comment!
  • Mon, Oct. 19, 4:04 PM
    • Flex (NASDAQ:FLEX): FQ2 EPS of $0.27 beats by $0.02.
    • Revenue of $6.32B (-3.2% Y/Y) beats by $150M.
    • Shares +4%.
    • Press Release
    | Mon, Oct. 19, 4:04 PM | Comment!
  • Fri, Jul. 24, 10:08 AM
    • Flextronics (NASDAQ:FLEX) is higher after posting in-line FQ1 EPS to go with a revenue miss, and guiding for FQ2 revenue of $5.9B-$6.5B and EPS of $0.22-$0.28 (in-line with a consensus of $6.23B and $0.25).
    • Boosting FQ1 EPS: Adjusted gross margin rose 60 bps Y/Y to 6.4%, and SG&A spend (non-GAAP) fell 2% to $195.3M. Also, $100M was spent to buy back 8M shares.
    • Along with the numbers, Flextronics has announced it has officially changed its name to Flex. "We have progressed in our product and service offering over the years, adding many new solutions, and today we are much more than just an EMS, supply chain solutions or 'tronics' company," says marketing/PR chief Michael Mendenhall.
    • FQ1 results, PR
    | Fri, Jul. 24, 10:08 AM | Comment!
  • Wed, Jun. 17, 5:37 PM
    | Wed, Jun. 17, 5:37 PM | 1 Comment
  • Wed, Apr. 29, 6:41 PM
    • In addition to missing FQ4 revenue estimates (while beating on EPS), Flextronics (NASDAQ:FLEX) is guiding for FQ1 revenue of $5.6B-$6.2B and EPS of $0.20-$0.26, almost entirely below a consensus of $6.5B and $0.26.
    • No explanation is given for the outlook in the earnings release. A strong dollar is a likely headwind. Soft telecom equipment demand might be as well.
    • Separately, Flextronics has announced it's buying Mirror Controls (MCi), a Dutch maker of glass and powerfold mirror actuators for the auto industry, for $494M in cash (presumably offshore). With MCi having trailing revenue of $216M, Flextronics is paying 2.3x sales.
    • Flextronics notes MCi has "highly automated" manufacturing facilities in China, Mexico, and Ireland, and has "historically" seen 20% Y/Y sales growth. The deal is expected to close in calendar Q3 (FQ2), and be accretive to EPS/cash flow.
    • Shares have fallen to $11.62 AH.
    • FQ4 results, PR
    | Wed, Apr. 29, 6:41 PM | Comment!
  • Wed, Apr. 29, 5:37 PM
    | Wed, Apr. 29, 5:37 PM | 3 Comments
  • Wed, Apr. 15, 10:29 AM
    • Alcatel-Lucent (ALU -16.8%) has nosedived following news of its $16.6B deal to merge with Nokia (NOK -1.6%). Based on Nokia's Tuesday close of $7.96, the all-stock deal values Alcatel at €4.09/share ($4.35/share) to shareholders - well below yesterday's close of $4.93, though up from where shares traded ($4.07) before the first report of deal talks emerged.
    • Along with the deal, Nokia has confirmed it's exploring options for its HERE mapping/navigation unit, including a possible sale; analysts have argued HERE could fetch more than the €2B Nokia officially values the business at.
    • Meanwhile, Reuters reports contract manufacturer Flextronics (FLEX +1.1%) is in advanced talks to buy the manufacturing arm of Alcatel's Shanghai Bell Chinese telecom equipment JV. The JV had 2014 revenue of €3.1B ($3.28B).
    • Nokia will own 66.5% of the post-merger company, and Alcatel 33.5%. The company will operate under the Nokia brand and be headquartered in Finland. Nokia chairman Risto Siilasmaa will be its chairman, and Nokia CEO Rajeev Suri its CEO. The board is expected to have 9 or 10 members, with 3 from Alcatel-Lucent (one of whom will be vice chairman).
    • The companies are aiming for €900M/year in cost synergies by 2019, and €200M/year in interest savings by 2017. Nokia is maintaining its dividend, but is suspending buybacks until the deal closes. As of the end of 2014, NOK/ALU had €7.4B in net cash between them.
    • In a presentation (.pdf), NOK/ALU assert they'll offer carriers an end-to-end mobile/wireline portfolio covering mobile radio and core networks, IP routing, optical networking, cloud/SDN software, and various related services. Combined R&D spend of €4.7B/year is on par with Cisco's.
    • Bernstein has upgraded Nokia to Market Perform, and downgraded Alcatel to the same rating. Regulators are expected to take a close look at the deal's impact on the mobile infrastructure market - especially in the U.S., where Chinese firms are effectively locked out.
    | Wed, Apr. 15, 10:29 AM | 46 Comments
  • Fri, Mar. 13, 9:39 AM
    • Goldman has upgraded Flextronics (FLEX +1.3%) to Neutral and fellow contract manufacturer Sanmina (SANM +2.9%) to Buy. Its targets have respectively been hiked to $12 and $26.
    • Regarding Flextronics, Goldman argues demand from telecom infrastructure clients (pressured lately by weak carrier capex) is bottoming. Consumer hardware sales were a strong point for the company in calendar Q4.
    | Fri, Mar. 13, 9:39 AM | 3 Comments
  • Thu, Jan. 29, 12:49 PM
    • In addition to beating FQ3 estimates, Flextronics (NASDAQ:FLEX) has guided for FQ4 revenue of $6B-$6.4B and EPS of $0.23-$0.27 vs. a consensus of $6.2B and $0.24.
    • On the CC (transcript), CEO Michael McNamara mentioned Flextronics' Consumer Technologies Group (CTG) saw revenue rise 20% Q/Q in FQ3, well above guidance for low-single digit growth. Also, High Reliability Solutions (HRS - includes medical, auto, defense, and energy products) revenue rose 4% Q/Q, above guidance for flat growth.
    • McNamara also tried to soothe concerns Flextronics' sales to Motorola Mobility will decline on account of Motorola's sale to Lenovo, asserting Flextronics "[expects] to have a very positive relationship going forward" with Lenovo.
    • Gross margin rose 20 bps Y/Y to 5.8%, and op. margin over 10 bps to 2.9%. $84M was spent on buybacks.
    • Fellow contract manufacturer Jabil (NYSE:JBL), which also has plenty of consumer exposure, is up moderately. Jabil's FQ2 report is due on March 18.
    • Flextronics' FQ3 results, PR, earnings slides (.pdf)
    | Thu, Jan. 29, 12:49 PM | Comment!
  • Oct. 27, 2014, 5:14 PM
    • Sanmina (NASDAQ:SANM) expects FQ1 revenue of $1.65B-$1.7B and EPS of $0.55-$0.60, above a consensus of $1.58B and $0.49.
    • Gross margin rose 10 bps Y/Y in FQ4 to 7.8%. GAAP opex -1% to $70.1M.
    • Rival Flextronics (NASDAQ:FLEX) is getting an AH lift from Sanmina's numbers. Its FQ2 report arrives on Wednesday.
    • FQ4 results, PR
    | Oct. 27, 2014, 5:14 PM | Comment!
  • Oct. 10, 2014, 1:42 PM
    • Following Microchip's warning and related prediction of a chip industry correction, Goldman's James Covello thinks there's 15%-20% downside in industry names.
    • Covello, who lowered his industry view to Cautious in August: "The last time Microchip negatively preannounced was October 15, 2012 (3% sales miss). Between October 1 and December 31, Street 2013 sales estimates for the Semi group were revised down 6% on average."
    • He adds several datapoints suggest the industry has been overheating. Among them: Semi revenue growth has outpaced end-market growth, and supply chain inventory dollars rose 3% more than their 3-year average in Q2.
    • "Nobody will be spared," predicts Hedgeye's Craig Berger. Benchmark's Gary Mobley observes 5 of the 6 chip stocks to have made Q3 pre-announcements have thus done so to the downside.
    • Worth noting: Mobile chipmaker Silicon Motion (SIMO -8.9%) is the one chipmaker to have positively pre-announced. It might not be a coincidence that Microchip has relatively low mobile exposure.
    • Observing U.S. macro data remains positive even as China and Europe soften, Longbow's JoAnne Feeney remains bullish long-term on select names. However, she has cut her short-term rating on Linear (LLTC -3.8%) to Sell, and removed IDT (IDTI -7.1%) from her trading long list.
    • In addition to the names previously mentioned, the following chip stocks are seeing steep losses: AMD -5.1%. FCS -13.6%. NXPI -11.2%. CODE -11%. LSCC -9.6%. SIMG -8.1%. IPHI -7.7%. ISIL -9.5%. CY -6.9%. RMBS -7.1%. QUIK -5.7%. SQNS -5.1%. IMOS -6.5%.
    • Foundries and contract manufacturers are also selling off: TSM -3.9%. UMC -2%. SMI -2.4%. SANM -11.7%. FLEX -6.8%. JBL -4%.
    | Oct. 10, 2014, 1:42 PM | 44 Comments
  • Sep. 2, 2014, 4:30 PM
    • Flextronics (NASDAQ:FLEX) has obtained shareholder approval to buy back up to 1/5 of its shares. In addition, the company's board has signed off on the repurchase of up to $500M in shares (7% of them at current levels).
    • The contract manufacturer had $1.35B in cash as of June 27, and $2.13B in debt. It spent $106M on buybacks in the June quarter.
    | Sep. 2, 2014, 4:30 PM | Comment!
  • Jul. 25, 2014, 4:13 PM
    • Though Flextronics (FLEX -3.5%) beat FQ1 estimates, it has guided for FQ2 revenue of $6.2B-$6.6B and EPS of $0.22-$0.26, mostly below a consensus of $6.56B and $0.26.
    • The contract manufacturer had an FQ1 gross margin of 57.6%, flat Q/Q but down 240 bps Y/Y. EPS received a lift from a 6% Y/Y drop in SG&A spend to $209.3M, and $106M in buybacks.
    • FQ1 results, PR
    | Jul. 25, 2014, 4:13 PM | 1 Comment
  • May 22, 2014, 10:01 AM
    • Needham has upgraded Flextronics (FLEX +2.4%) to Buy, and set a $12 PT. The firm thinks the contract manufacturer has multiple growth drivers, and is upbeat about its ability to improve margins.
    • Argus upgraded Flextronics on May 8, a week after the company posted an FQ4 beat.
    | May 22, 2014, 10:01 AM | Comment!
  • May 8, 2014, 11:35 AM
    • Citing a belief the company can deliver sustained top-line growth, Argus has upgraded Flextronics (FLEX +2.6%) to Buy.
    • Shares are making new 52-week highs, after having rallied last week following an FQ4 beat and in-line FQ1 guidance. Flextronics' FY15 (ends March '15) revenue consensus only implies 0.8% growth, but its FY16 consensus implies 3.9% growth.
    | May 8, 2014, 11:35 AM | Comment!
Company Description
Flextronics International Ltd designs, build, ships and service complete packaged consumer electronics and industrial products for original equipment manufacturers.